Devcon VI

Cost of Feudalism: Towards a Theory of MEV
10-12, 15:30–16:00 (America/Bogota), Talk 5

Maximal Extractable Value (MEV) is excess value captured by miners/validator. This excess value often comes from reordering, censoring, or inserting new transactions that allow a miner to front-run users' transactions. Is MEV always bad? Can it sometimes lead to good equilibria for users? We modify tools from algorithmic game theory and probability to prove some surprising paradoxes — some MEV improves trading efficiency in networks of automated market makers.

Floating through the Ether, reading math papers, writing DeFi research @GauntletNetwork, techno lover.

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